Chilean miner Antofagasta has been one of London’s best performers in the past four months, shooting up 66% on the back of China reopening hopes and a rebound in copper prices.
A decent trading update last October has also helped with third-quarter copper production up 40% as water issues at its flagship Los Pelambres mine eased.
Antofagasta has guided for copper output for the year to be at the lower end of its 640-660,000 tonnes, with 670-710,000 tonnes in the current twelve months subject to a new desalination plant coming onstream at Los Pelambres.
Any change in those numbers will be key in the production update tomorrow, but water is just one of a number of issues Antofagasta is facing in Chile with the access to the mine being blocked by protestors before Christmas another new twist.
But with copper predicted to be heading even higher on structural shortages as battery metals demand rises and China recovers, investors seem more than happy to overlook any problems.
Shares are currently close to a year’s high at 1,736p.